SCO Group has reported a 16.5 per cent decline in revenue in the most recent quarter to $9.4m.
The drop was attributed largely to a fall in revenue from its controversial SCOsource Linux insurance scheme, combined with a decline in sales of Unix products.
SCO reported a loss of $2.4m for the quarter ending 31 July, compared to a profit of $7.5m in the same period last year following a one-time $14.9m contribution.
The software vendor is best known for the legal cases it has filed against developers and users of Linux. SCO claims to own the copyrights of the Unix operating system and alleges that Linux infringes on that copyright.
Offering protection to Linux users against any legal claims from the alleged copyright violations, SCO sells licences under the SCOsource banner.
Although SCO claimed for a while that the licences sold well, the vendor is now reporting a sales drop.
Even though sales of SCO's OpenServer operating system declined once again in the quarter, the software business is actually making a profit, according to chief executive Darl McBride.
The losses are largely the result of legal costs for the cases against IBM and other parties. But SCO revealed last year that it had capped its legal costs and has enough cash reserves to make it through the case. The vendor can stop making most legal payments after the next quarter.
SCO also recently unveiled an updated version of its OpenServer software that has been received fairly well. Last month at SCO Forum in Las Vegas McBride said that he expected sales of the software to pick up in the coming quarter.
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